The proposed research demonstration project will evaluate the effectiveness of providing comprehensive supportive services coordinated with independent housing alternatives for severely and persistently mentally ill homeless persons. This project capitalizes on unique opportunity presented by the collaboration between the local housing authorities, who are providing Section 8 vouchers and certificates, and San Diego County Mental Health Services. Instead of the usual approach which focuses on preparing homeless mentally persons for community residence through transitional living situations, this project will focus on assisting individuals in the selection and acquisition of an actual home in the community that is suited to their needs and preferences. An emphasis will be placed on client choice in both the selection of housing options and supportive services. The primary research hypothesis is that among homeless mentally ill persons, the combination of comprehensive and flexible supportive services with permanent housing will produce better specified outcomes at six and twelve month follow-up than the comparison conditions. These outcomes include: a) level of severity of psychopathology; b)increased stability of housing; c) functional status; d) improved quality of life and life satisfaction; e) improved physical health condition; and f) more effective use of mental health services. More specifically, researchers hypothesize that comprehensive support services and housing will each produce better outcomes than the comparison condition of traditional case management. The design will also allow us to test the additive effects of the two experimental interventions and for interactive effects as well.